Law Summary
Local Exchange (LE) Services
- Mandatory universal basic telephone service with non-discriminatory access within authorized areas.
- Compliance with prescribed service performance and technical standards required.
- Expansion of long distance services in LE areas restricted, with exceptions for failure to meet service/time standards or compensation agreed.
- Multiple LE operators in an area require compensation sharing based on working line counts.
- Commission may authorize new LE operators to address unmet demand (90% of applications served within 10 days).
- Bypass rules apply to PSTN only; LE operators have first right for pay telephone services.
- Use of cost-effective, preferably state-of-the-art, technology mandated.
Interexchange Carrier (IXC) and International Carrier (IC) Services
- IXCs must interconnect non-discriminatorily with other carriers under prescribed rules.
- IXCs follow prescribed technical/service standards.
- ICs must comply with guidelines; failure to install required local exchange lines within 3 years may lead to authority cancellation.
Mobile Radio Services (MRS)
- Cellular Mobile Telephone System (CMTS) operations follow existing NTC rules.
- Roll-out plans for LE service by CMTS operators reduced to 3 years.
- CMTS subscribers not counted as LE subscribers.
- Failure to install required 400,000 LE lines within 3 years may result in cancellation of authority.
- Public Repeater Network (PRN) services deregulated; providers must publish rate changes and notify subscribers/Commission beforehand.
Radio Paging and Value Added Services
- Radio paging providers must register, apply for frequencies, and comply with standards.
- Paging service rates deregulated with public notice and Commission notification required before rate changes.
- Expansion of paging services requires prior notice to Commission; no formal approval needed.
- Non-PTE Value Added Service (VAS) providers do not need congressional franchise; must register with Commission.
- VAS providers must use authorized PTE transmission networks and comply with performance standards.
Interconnection and Access Charges
- Interconnection rules adopted; parties to negotiate charges, with Commission resolving disputes.
- Parties encouraged to share facilities and route calls via nearest interconnection points using lowest cost routing.
- Local exchange services cross-subsidized by other telecom services until properly cost-priced.
- Cost manual based on modified FCC accounting rules submitted annually for approval.
- Interconnection charges include access charge plus subsidy, classified by geographic area.
- Detailed cost separation and allocation rules specified, emphasizing transparency and non-discrimination.
- No access charges between LE operators with fixed monthly rates; otherwise, negotiation required.
Radio Spectrum
- Spectrum allocation subject to periodic review to enable universal access and adoption of cost-effective technology.
- Radio Frequency Consultative Committee (RFCC) to recommend procedures on spectrum review, frequency transfer, user fees, and bidding for scarce frequencies.
Rates and Tariff
- Commission to establish fair and reasonable rates supporting economic viability and investment returns.
- Deregulation of rates allowed where competition sufficient, but cross-subsidies for LE service maintained until cost-based pricing.
- Promotional rates under 15 days require notice; longer promotional rates treated as rate reductions with administrative approval.
- Rate increases require quasi-judicial proceedings; provisional authority may grant immediate effect with conditions.
- Rental/lease of terminal equipment rates deregulated.
- Deregulated entities must monthly submit rate changes.
Consumers and End Users; Expansion/Modernization Of Facilities
- Telecommunications services to meet prescribed performance standards.
- Service applications served first-come, first-served; priority to emergency/security establishments.
- Customers responsible for calls made from their equipment with documented billing.
- Billing timelines specified; failure to bill timely subject to sanction.
- Complaint mechanisms established with timelines for PTE response and Commission adjudication.
- Customer Premises Equipment deregulated.
- Expansion or upgrading of existing plant within authorized areas does not require Commission approval but must be reported.
Other Regulations
- Standards to follow international recommendations and treaties.
- Cable TV operations governed by separate EO but treated as PTEs if offering telecom services.
- Mergers/acquisitions levy local service obligations on surviving/acquiring company.
- Prohibition of unauthorized callback/dialback schemes and resale of leased lines.
Transitory Provisions and Nullity Clause
- Existing franchises with valid CPCN or PA continue until expiration or revocation.
- Unused or unregistered franchises as of effectivity date are revoked.
- Invalidity of any provision does not affect remaining provisions.
Effectivity and Amendment
- Circular may be revised, amended or repealed by Commission as necessary.
- Takes effect 15 days after publication and filing with UP Law Center.